B2B SaaS startup Atomicwork has raised $25 million in Series A funding to enhance its AI-driven automation platform, transforming enterprise IT service management with its innovative agentic service management approach.

The Series A funding round was led by Khosla Ventures and Z47 (formerly Matrix Partners India), with additional backing from Battery Ventures, Blume Ventures, and Peak XV Partners. This investment strengthens Atomicwork’s mission to modernize IT service management (ITSM) through AI-driven automation.

“With this new funding, we will focus on expanding our go-to-market strategy while also investing in research and development for AI. Additionally, we will continue to allocate resources towards advancing Agentic AI innovations within the company to benefit enterprises,” said Atomicwork cofounder and CEO Vijay Rayapati.

Rayapati said that the company’s technology is designed to transform how businesses handle IT processes. He noted that the investment affirms their vision of a future where intelligent IT teams drive business growth and companies are empowered by technology rather than hindered by it.

Atomicwork Scaling Innovation

Founded in 2022 by Vijay Rayapati, Kiran Darisi, and Parsuram Vijayasankar, Atomicwork is reshaping enterprise IT service management with agentic AI. The company’s platform integrates an enterprise knowledge graph to streamline IT workflows, manage incidents in real time, and enable self-healing capabilities, empowering IT teams to focus on strategic initiatives rather than routine support tasks.

With offices in San Francisco, Singapore, and India, Atomicwork plans to utilize the funding to enhance its go-to-market strategy, expand integration capabilities, and support large-scale deployments. The startup aims to address inefficiencies in traditional ITSM tools, ensuring enterprises can meet the growing demands of a digitally connected workforce.

Kanu Gulati of Khosla Ventures highlighted the impact of Atomicwork’s AI technology on organizations. “Atomicwork’s AI agents can autonomously handle everyday IT services, allowing employees to focus on growing the business,” he said.

Strategic Growth and Enterprise Expansion

Atomicwork’s AI-powered IT solutions are already being adopted by companies like Zuora and Pepper Money, optimizing IT workflows and improving overall productivity. CEO Vijay Rayapati, who previously founded Minjar—acquired by Nutanix—emphasized that this funding validates their vision of AI-driven IT service transformation.

“We are pioneering agentic service management to redefine how enterprises handle IT workflows. Our goal is to empower organizations with AI-driven automation, eliminating inefficiencies and driving business growth,” said Rayapati.

Atomicwork’s funding comes amid renewed investor interest in high-growth SaaS startups. The company had previously raised $11 million in a 2023 seed round led by Blume Ventures and Matrix Partners India, followed by an additional $3 million from Abhinav Dhar, ex-CIO of TransUnion, and other industry leaders in 2024. With this latest round, Atomicwork’s total funding has reached approximately $40 million.

The Future of IT Service Management

The broader SaaS funding landscape is showing signs of revival, as seen in recent investments like Whatfix’s $125 million round led by Warburg Pincus and Easebuzz’s anticipated ₹200 crore raise with Bessemer Venture Partners.

Atomicwork is now doubling down on its agentic service management approach, which leverages AI-driven automation to manage IT, HR, and finance workflows. By collecting tribal knowledge from across organizations—stored in documents, wikis, email threads, and chat conversations—the platform ensures seamless enterprise operations.

With this fresh capital injection, Atomicwork is poised to accelerate its AI roadmap, drive enterprise adoption, and set a new standard for modern IT service management.

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